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Strategies & Market Trends : US Inflation and What To Do About It -- Ignore unavailable to you. Want to Upgrade?

To: Construction Koala who wrote (1494)	7/16/2021 12:24:24 PM
From: ggersh	Respond to of 1504

Very rational thinking here CK although not trading or in the markits any longer if LEAPS are available, they could very well be the best way to take the position you want. Best of luck, ggersh

To: Construction Koala who wrote (1494)	7/16/2021 5:37:53 PM
From: Harshu Vyas	Respond to of 1504

CK, Just some clarification. There definitely are ways to make money out of inflationary periods. Look at Warren Buffett during the 70's and 80's- sure he struggled but after the crash, stocks will be ridiculously cheap. As for during the inflation, well the stock market is currently booming. Everyone's making money and everyone's a genius. As for the S&P 500, I think its safe in the long-run. Sure, indexing is popular right now but it's like housing. The value of the top 500 companies in the USA is going to be more in 50 years than it is now. That's a given. It's foolish to invest in an index fund to make a "quick buck" anyway- your retirement is safe in there. In my opinion, it would be quite foolish to wait for the inflation to end (which could be years away) before investing any money. Be precautious, but remember there are opportunities out there- it's also why you should do your research before buying a stock. If you've done your research and have found a good price, then why should you worry? Best, Harsh

To: Construction Koala who wrote (1494)	7/17/2021 8:34:53 AM
From: Harshu Vyas	Respond to of 1504

CK, Just another question. Are you short index funds? If so, why and have you got any research to back it up? What makes you say index funds are over-popularised? Also, why would you short US treasuries? I read an article this morning from the FT saying that the value of bonds have actually gone up with expectations of inflation. Shorting US treasuries is by far more risky than investing in the S&P 500 (even if indexing has become a bubble) especially if you are looking to use leverage. There are many other profitable ways to make money during an inflation, You can buy oil and gold as inflationary hedges. If you expect crime to increase, invest in prisons... Please don't take this the wrong way. I just want to know how you have reached your conclusions. Best, Harsh

To: Construction Koala who wrote (1494)	7/24/2021 11:05:04 AM
From: Halfdave	Respond to of 1504

I too have been wrestling with this conundrum. I have read a few articles from gurus such as Mike Burry, Stan Drunkenmiller, etc. Mike is buying the TBT, which is the inverse of the 20 year. He is raising such an alarm that it has me concerned. I cannot figure what Stan is doing about it. I don't know if he is holding a shit ton of cash or what his positioning is. I being to think the best I can do is hold more cash than normal, for me that would be 5%.